The global digital transformation market is projected to grow from USD 205.99 Billion in 2017 to USD 493.39 Billion by 2022, at a CAGR of 19.1% from 2017 to 2022. Growing innovation in businesses, changing customer preferences, the rapid proliferation of mobile devices & apps, increasing penetration of IoT, and rising adoption of the cloud platform are some of the major factors driving the digital transformation market. The market has been segmented based on component, deployment type, end user, vertical, and region.

Based on component, the market has been classified into solution and service. The solution segment has been further segmented into cloud computing, big data & analytics, mobility, disruptive technology, and social media. The service segment has been further segmented into system integration and professional services. The service segment is expected to grow at a higher CAGR than the solution segment during the forecast period. Based on deployment type, the market has been segmented into cloud and on-premise. The cloud segment is estimated to account for a larger market share than the on-premise segment in 2017 and is also projected to register a higher CAGR during the forecast period. End users of digital transformation solutions and services include SMBs and enterprises. The SMBs segment is expected to register a higher CAGR than the enterprises segment during the forecast period. The verticals that use digital transformation solutions and services include BFSI (banking, financial services & insurance), healthcare, telecom & IT, automotive, education, retail & consumer goods, media & entertainment, manufacturing, and government.

One of the major factors restraining the growth of the market is the security and privacy concerns for confidential data. Security is a major issue while executing digital enablement technologies, thus endangering the success of digitization. As IoT becomes more widespread, organizations will increasingly require more robust security and privacy to prevent breaches. With the growing number of IoT-enabled systems, the number of security and privacy issues will also increase, and every endpoint, gateway, sensor, and smartphone will become a potential target for hackers. Furthermore, organizational data can be easily accessed on the go with the help of BYOD devices, such as smartphones, tablets, phablets, and laptops. The middleware application makes these devices portable, thereby making them vulnerable to loss of physical control and network security breaches. Using a portable device can increase the risk of data loss and exposure of data and device through network-based attacks to-and-from any system the device is connected to.